NOTE 7. NOTES PAYABLE |
6 Months Ended |
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Jun. 30, 2015 | |
| Debt Disclosure [Abstract] | |
| Debt Disclosure [Text Block] |
NOTE 7. NOTES PAYABLE
On June 27, 2012, we issued a $500,000 convertible promissory note bearing interest at 12% per year with an initial maturity date of March 27, 2014, which was extended to March 27, 2015. In December 2014, we made a principal payment of $200,000 on this note and in March 2015 we paid the remaining $300,000. For the three months ended June 30, 2015 and 2014, we recorded $0 and $15,000 in interest expense related to this note. For the six months ended June 30, 2015 and 2014, we recorded $8,600 and $30,000 in interest expense related to this note.
In June 2013, we renewed a $50,000, 10% debenture originally due June 30, 2013 to a maturity date of June 30, 2015 in exchange for 50,000 warrants at $0.45 per share. Interest is payable quarterly and the full principal amount is due upon maturity. In June 2015, we repaid this debt in accordance with the provisions of the note. For the six months ended June 30, 2015 and 2014, we recorded interest expense of $2,500, in both periods.
Line of Credit
On September 3, 2014, we entered into a $2,000,000 revolving line of credit agreement with Wells Fargo Bank, N.A. Outstanding principal on the line of credit bears interest at the 30 day London Interbank Offered Rate (“LIBOR”) plus 2%, resulting in an effective rate of 2.18% at June 30, 2015. The line of credit matures on August 31, 2017 and is personally guaranteed by Peter Dalrymple, a director of the Company. As of June 30, 2015 and December 31, 2014, outstanding borrowings under the line of credit totaled $1,025,000 and $500,000, respectively. For the three and six months ended June 30, 2015, we recorded interest expense of $4,941 and $7,205, respectively. There was no interest expense related to this note for the three and six months ended June 30, 2014.
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